China is moving closer to approving the launch of the country’s first cross-border exchange traded fund after regulators began a review of an application for an ETF that invests in Hong Kong stocks, according to a report Tuesday.

The China Securities Regulatory Commission earlier this month accepted an application to list an ETF that tracks Chinese stocks.

“The approval procedure could be as long as six months, but a source familiar with the process said the approval may be given as early as this month,” according to the report. “The market widely expects China to initially approve two cross-border ETF products.”

Reports surfaced over the summer that China was planning to introduce an ETF that invests in Hong Kong stocks in an effort to raise the city’s standing as a financial center. [China Eyes Hong Kong ETF]

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